QUOTE(jfpbonline @ Nov 1 2016, 09:34 PM)
https://www.imoney.my/articles/this-is-how-...8000-affect-you
Further information on increasing basic saving in EPF acc1.
Hi, do you think the article is accurate? Especially this partFurther information on increasing basic saving in EPF acc1.
To increase the amount in Account 1 to meet the savings threshold, the difference will be transfered from Account 2 to 1. This means that contributors will find a smaller amount in their EPF Account 2. A smaller Account 2 amount means less money for housing, medical and education withdrawals. This will definitely put more financial strain on the lower income group as they will need to save up more outside of EPF to fund for these.
I looked up EPF's statement on this and it doesn't talk about it at all. I would support the action to transfer acct2 balance into acct1 to make up for the shortfall, but I think there is a lot of practical aspects to address this since currently it's by default 70% Acc1: 30% acc2. The allocation method would need to change if they would fill the basic savings first. And what if later on I have a lot more in Acc1 than basic savings while my acc2 is lagging behind. Am I tend allowed to move the funds back to acc2 for my housing or education?
http://www.kwsp.gov.my/portal/en/news-list...DetailPage=true
QUOTE(Hansel @ Nov 2 2016, 10:28 AM)
So,....the final effect is... less amount in Acc 2 for withdrawals in future. which means more funds held by EPF !!
I seriously question the accuracy of the article. But what is for sure is, the amount that one can withdraw to invest in unit trust would be less, although they can take out the amounts quicker (30% vs 20%). So UT agents need to find new revenue source